National Rural Utilities Prices 4.10% InterNotes, July 2027 Maturity

Rhea-AI Filing Summary

National Rural Utilities Cooperative Finance Corporation (NRUC) filed a pricing supplement for a modest InterNotes® issuance under its October 2023 shelf. The company is offering $1.047 million of senior unsecured notes (CUSIP 63743F3M6) that carry a 4.10 % fixed coupon paid monthly. The notes are priced at par (100 % of principal), resulting in $1.041 million in net proceeds after a 0.55 % selling concession. They mature on July 15 2027 and are non-callable, though a survivor’s option is available to retail holders.

The paper trades on June 30 2025 and settles through DTC on July 3 2025 in $1,000 denominations. InspereX, Citigroup Global Markets, Wells Fargo Clearing Services and RBC Capital Markets act as agents, while U.S. Bank Trust Company, N.A. serves as trustee. Legal counsel Hogan Lovells US LLP opines that, once issued, the notes will be valid and binding obligations of NRUC, subject to customary insolvency and equitable considerations.

Given its short tenor and small size, the issuance appears to be a routine liquidity exercise rather than a transformational capital event. It locks in fixed funding at a rate that is competitive with current short- to intermediate-term yields, adding incremental senior debt without materially altering the cooperative’s capital structure.

Positive

• Fixed 4.10 % coupon locks in attractive funding costs amid uncertain rate trajectory.
• Non-callable structure signals issuer commitment and offers investors cash-flow certainty.
• Survivor’s option increases appeal to retail investors, potentially broadening demand.

Negative

• Small issuance size ($1.047 M) provides only marginal incremental liquidity to NRUC.
• Monthly coupon payments raise administrative complexity versus customary semi-annual schedules.
• Limited float may restrict secondary-market liquidity for larger fixed-income managers.

Insights

Fixed Income Analyst

TL;DR: Small, plain-vanilla 4.10 % senior InterNotes raise routine liquidity; credit profile unchanged—neutral impact.

The $1.047 million face value is negligible relative to NRUC’s multi-billion-dollar funding portfolio, so leverage and coverage metrics remain effectively intact. A 4.10 % coupon for a two-year, non-callable instrument looks in line with current U.S. agency spreads, suggesting the cooperative is refinancing at market-neutral terms. The monthly pay structure and survivor’s option cater to retail demand, broadening the investor base for future issuances. Because proceeds are unlikely to shift debt-service capacity or coverage ratios, the transaction is credit-neutral.

Portfolio Manager

TL;DR: Short-dated senior note offers predictable cash flow for retail buyers but is immaterial to NRUC’s overall capital stack.

From a portfolio-allocation standpoint, the security provides a stable 4.10 % nominal yield with senior unsecured ranking and no call risk, aligning with laddering strategies in the 2-3-year bucket. However, limited float and monthly coupons may hamper secondary liquidity and administrative efficiency for institutional accounts. For NRUC, the incremental funding modestly diversifies maturity walls but does not meaningfully enhance liquidity reserves. Overall impact is operationally neutral.

Filed under Rule 424(b)(3), Registration Statement No. 333-275151

Pricing Supplement No. 636 - Dated Monday, June 30, 2025 (To: Prospectus Dated October 24, 2023 and Prospectus Supplement Dated October 27, 2023)

CUSIP Number

Principal Amount

Selling Price

Gross Concession

Net Proceeds

Coupon Type

Coupon Rate

Coupon Frequency

Maturity Date

1st Coupon Date

1st Coupon Amount

Survivor's Option

Product Ranking

63743F3M6

$1,047,000.00

100.000%

0.550%

$1,041,241.50

Fixed

4.100%

Monthly

07/15/2027

08/15/2025

$4.78

Yes

Senior Unsecured Notes

Redemption Information: Non-Callable

			Offering Date: Monday, June 23, 2025 through Monday, June 30, 2025			National Rural Utilities Cooperative Finance Corp
National Rural Utilities Cooperative Finance Corp			Trade Date: Monday, June 30, 2025 @12:00 PM ET
			Settle Date: Thursday, July 3, 2025			Prospectus dated October 24, 2023 and
			Minimum Denomination/Increments:$1,000.00/$1,000.00			Prospectus Supplement Dated: October 27, 2023
			Initial trades settle flat and clear SDFS: DTC Book Entry only
			DTC Number: 0235 via RBC Dain Rauscher Inc.
			Agents: InspereX LLC, Citigroup Global Markets Inc., Wells Fargo Clearing Services, LLC, RBC Capital Markets, LLC
			Trustee: U.S. Bank Trust Company, National Association
			If the maturity date or an interest payment date for any note is not a business day (as term is defined in prospectus), principal, premium, if any, and interest for that note is paid on the next business day, and no interest will accrue from, and after, the maturity date or interest payment date.
			Validity of the Notes
			In the opinion of Hogan Lovells US LLP, as counsel to the Company, following (i) receipt by the Company of the consideration for the notes specified in applicable resolutions of the board of directors of the Company and (ii) the due execution, authentication, issuance and delivery of the notes pursuant to the terms of the indenture and the applicable underwriting, agency or distribution agreement against payment therefor, the notes offered by this pricing supplement will constitute valid and binding obligations of the Company, subject to the effect of (a) bankruptcy, insolvency, reorganization, receivership, moratorium and other laws affecting creditors’ rights and remedies (including, without limitation, the effect of statutory and other law regarding fraudulent conveyances and fraudulent, preferential or voidable transfers), and (b) the exercise of judicial discretion and the application of principles of equity, good faith, fair dealing, reasonableness, conscionability and materiality (regardless of whether the applicable agreements are considered in a proceeding in equity or at law), including, without limitation, principles limiting the availability of specific performance and injunctive relief.
			This opinion is based as to matters of law solely on applicable provisions of the following, as currently in effect: (i) the District of Columbia General Cooperative Association Act of 2010 and (ii) the laws of the State of New York (but not including any laws, statutes, ordinances, administrative decisions, rules or regulations of any political subdivision below the state level). In addition, this opinion is subject to customary assumptions about the trustee’s authorization, execution and delivery of the indenture and its authentication of the notes and the validity, binding nature and enforceability of the indenture with respect to the trustee, all as stated in the letter of such counsel dated October 27, 2023, which has been filed as an exhibit to a Current Report on Form 8-K by the Company on October 27, 2023.
			InterNotes® is a registered trademark of InspereX Holdings LLC. All Rights Reserved.

FAQ

What is the coupon rate on NRUC’s new senior notes?

The notes carry a 4.10 % fixed coupon paid monthly.

When do the NRUC InterNotes mature?

The maturity date is July 15 2027.

How large is the issuance of NRUC senior notes?

The principal amount totals $1.047 million.

Are the NRUC notes callable before maturity?

No, the notes are non-callable for their entire life.

What net proceeds will NRUC receive from the offering?

After a 0.55 % selling concession, NRUC will receive $1.041 million in net proceeds.

What is the minimum investment denomination for the NRUC notes?

The minimum denomination is $1,000, with $1,000 increments.

Who are the distribution agents for this NRUC offering?

Agents include InspereX, Citigroup Global Markets, Wells Fargo Clearing Services, and RBC Capital Markets.